Japan: Composite PMI rises in October
The au Jibun Bank Composite Purchasing Managers’ Index (PMI) came in at 51.8 in October, up from September’s 51.0. Consequently, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in private sector operating conditions compared to the previous month.
Meanwhile, the manufacturing PMI stood at 50.7 in October, down from Septembers 50.8. Lastly, the services PMI activity index increased to 53.2 in October (September: 52.2).
The stronger print in October was spearheaded by the services sector, which benefitted from the recent relaxation of border restrictions and a government program to subsidize domestic travel. Faster growth of employment and output outweighed slower growth of new orders. However, the rise in the composite PMI was hampered by a weaker manufacturing PMI. Output and new orders in the manufacturing sector contracted for the fourth consecutive month as input inflation remained elevated and output inflation rose at a series-high pace. With price pressures remaining high, overall business confidence in the two sectors fell to a six-month low.